MPF WHITE PAPER - AW 2014 Law Firms in Transition - 10-21-14

2014 LAW FIRMS IN TRANSITIONfound that in 69% of firms, less than half of non-equity partners have a realisticchance of ever moving up to the equity tier.Leading ChangeTwo-thirds of law firm leaders think the pace of change in the profession is stillincreasing. Another 30% believe it will remain at its current pace (which is notinconsiderable).Leaders are relatively confident that their firms are prepared to keep up with thechallenges of the new legal market, rating themselves at a median ‘7’ on a 0 to 10scale. However, only 13% are highly confident (9 or 10 on the scale).An ongoing drag on firm leaders’ ability to lead change is found in their partners whoare often unaware of the ways in which the profession is changing or who simplydon’t want to do things differently. Leaders rate their partners overall awareness ofand adaptability to change at a median of ‘6’ on a 0 to 10 scale in both of theseareas. Only 7% of firm leaders think their partners are highly aware (scoring them 9or 10 on the rating scale), and 2% find their partners to be highly adaptable tochange.A comment from one survey participant encapsulates this challenge: “Plans arebeing laid by leadership; however, it remains to be seen if they will be embraced bya substantial number of partners.”Planning for the FutureSince the recession, when law firms were planning in six month or one yearincrements (if they were doing so at all), the planning outlook has stretched outagain. Sixty-nine percent of firms now say they have a basic planning horizon ofthree to five years. When asked if they are systematically laying the groundwork forany long-term strategies that will not reach fruition for eight to ten years, 44% of firmleaders said yes, and 56% said no.The final question of the survey asked law firm leaders which was the greater driverof decision-making in their firms in 2014: Long-term investment in new pricing andservice delivery strategies to lock in their most valuable clients; or, Short-termprofitability to lock in their most valuable partners. The overall response showed firmAn Altman Weil Flash Survey iv